The construction supply chain struggled to keep pace with increasing new housing and infrastructure across the UK in the second quarter, according to data from RICS.

The latest RICS Construction and Infrastructure Survey indicated that with total workloads showing strong growth – after 38% of respondents reported a rise – there were also problems reported with the cost of materials and shortage of staff to deliver projects.

Growth in the private residential sector continued to lead the construction market, with the survey findings that 50% of respondents reported an increase in activity during Q2, up from 39% in the previous quarter and the strongest reading in the last six years.

RICS also recorded a rise in infrastructure works, with a net balance of 45% reporting an increase – up from 34% in the previous quarter – with new energy projects in particular being cited as the area behind this growth.

The research, based on responses from 508 chartered surveyors across the UK, revealed that respondents are predicting construction workloads to continue to gather pace, with a net balance of 55% suggesting more activity is expected, the highest since early 2016.

RICS chief economist, Simon Rubinsohn, said that the tone of the feedback received in Q2 is “upbeat”, with new business enquiries picking up “smartly”, and this being reflected in the expectation that workloads will continue to grow strongly over the next year.

“Infrastructure and private housebuilding are viewed as likely to remain the most buoyant areas of the industry. Yet it is abundantly clear that a couple of issues present big challenges,” Rubinsohn said. “Most notably at this point, the availability of building materials stands out as a key problem for respondents to the RICS survey.

“But almost as significantly, labour and skills are increasingly being cited as obstacles for businesses looking to build out existing commitments or embark on new projects. For the time being, the issue appears most visible regarding skilled trades but quantity surveyors are also being highlighted as an area of growing shortage.

“Unsurprisingly against this backdrop, some concern is being expressed about rising construction costs.”

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